Diageo today reported a 17% rise in profits during the last six months but warned that consumer confidence will fall further this year.
The manufacturer, which counts Guinness and Smirnoff in its portfolio, has cut its underlying operating profit target for the full financial year to 4-6%.
In the UK, the firm recorded a 1% drop in sales yet said the popularity of its spirits range proved its brands are still popular.
Chief executive Paul Walsh said: “In the second half we will implement a restructuring programme designed to ensure that Diageo emerges from this challenging time with improved routes to market, even stronger brand positions and enhanced financial strength.”
Commenting on the firm’s UK performance, Benet Slay, GB managing director, said: “I’m delighted that Guinness continues to outperform the on-trade market and continues to hold its position as the third-largest beer brand by value.
“Guinness has achieved 24 consecutive months of share growth with an all time record share of 7.6% of the beer category.”
He added that Bailey’s performed well over the last half-year and the Ketel One vodka brand has been smoothly integrated into the business.
It ramped up its Johnnie Walker Black advertising campaign this week.
